* Some 1,300 cabin crew won't strike after deal
* Union says agrees similar pay deals in Norway and Denmark
* Two sides to go to court over changes to pension schemes
* Shares up 6 pct
(Adds Norwegian Air, analyst, shares, background)
By Camilla Knudsen and Ole Petter Skonnord
OSLO, May 19 Some 1,300 cabin crew at Norwegian
Air, Europe's third-biggest budget airline, will not go
on strike after a trade union and the company struck a deal, the
parties said on Monday.
Shares in Norwegian Air jumped on the announcement and were
among the best performers on the Oslo bourse, up 6.5 percent by
0807 GMT, outperforming the Oslo benchmark index which
was up 0.2 percent.
"It is clearly positive that the company has avoided a
full-scale strike," said Kenneth Sivertsen, an analyst at
Oslo-based brokerage Arctic Securities. "The strike was acting
as a dampener on bookings."
Besides pensions, the main contention was the airline's
decision to move its Norwegian and Danish cabin crew members
into separate subsidiaries, which unions said reduced their
At first glance it would appear Norwegian Air had been able
to reach an agreement which was not too costly for the company,
Sivertsen said. "The most important thing was to keep working
conditions at a reasonable and competitive level, and it looks
like Norwegian Air has done that. So they will be able to grow
in Europe," he said.
Trade union Parat, which said the deal was reached in the
night from Sunday to Monday, said it achieved some of its
results, including collective pay agreements that are similar in
both Norway and Denmark. It also got more say for employees on
However the union and company management will go to court
over what the union described in a statement as unauthorised
changes to cabin staff pension schemes.
Norwegian Air welcomed the agreement. "It is good we reached
a deal and that we can look forward," Norwegian Air Chief
Executive Bjoern Kjos said in a statement.
Norwegian Air is the third-biggest budget airline by
passenger numbers after Ryanair and Easyjet.
(Writing by Gwladys Fouche; Editing by David Holmes)